Page 6 - GEORptNov19

1pp to 8.5%, thus continuing its efforts to curb inflation partly fuelled by expectations for imminent currency depreciation.​ The central bank hiked its key interest rate twice in September by 50bp each time. The Georgian lari has remained undervalued.
On the banking front, in​ the first half of 2019, profits dropped for seven out of 15 commercial banks registered in Georgia and the aggregate net profit of the banking system decreased by 10% y/y to GEL361mn ($124mn)​, according to a report of the National Bank of Georgia. Some 96% of the profits was realised by the two largest banks: TBC Bank and Bank of Georgia.
Meanwhile, Georgia’s government extends deadline for Anaklia Development Consortium (ADC) to raise financing for Anaklia deep sea port, one of the country’s major economic projects, ​which has in recent months become subject to a fierce political dispute.​ The government has decided not to terminate the public-private partnership contract signed in 2016, but to give ADC two and a half months more to meet requirements, Minister of Regional Development and Infrastructure Maia Tskitishvili said on October 15. Those requirements are to find a replacement for US-based Conti Group that lately pulled out of the project and secure $400mn financing for the first stage of the project.
2.0​ ​Politics
2.1​ ​US House of Representatives passes bipartisan
Georgia Support Act
The US House of Representatives on October 24 passed a bipartisan Georgia Support Act​, ​a bill “to support the independence, sovereignty, and territorial integrity of Georgia, and for other purposes”.
The act outlines US policy backing the continuation of the development of democratic values in Georgia, including free and fair elections, public sector transparency and accountability, the rule of law and anti-corruption efforts. It also supports the country’s sovereignty, independence and territorial integrity within its internationally recognised borders, the right of the Georgian people to freely determine their future and make independent and sovereign choices on foreign and security policy and Georgia’s Euro-Atlantic and European integration.
Prime Minister of Georgia, Giorgi Gakharia, thanked the US House of Representatives for implementing the Georgia Support Act.
“On behalf of the Georgian people, I want to thank the US House of Representatives for passing the Georgia Support Act. It represents the first standalone legislation related to Georgia dedicated to taking our partnership to the next level. The US is our closest strategic ally,” the PM tweeted.
The bill reiterates that the US does not recognise the occupation of Georgian breakaway regions Abkhazia and Tskhinvali (South Ossetia) by the Russian Federation.
6​ GEORGIA Country Report​ November 2019 ​ ​www.intellinews.com